Shared hosting vs. application hosting – what is the difference?[Updated 2019]

Published by admin on

The first questions that comes to our mind is what exactly is web hosting? In plain and simple language, a web hosting service is a hosting service that is provided by a web host provider, through which an individual or an organization posts their website on the internet.

Types of hosting services:

There are basically two types of hosting services, Small Hosting Services and Large Hosting Services.

  • In small hosting services, the web page is of the most basic type and can be uploaded via a web interface or File Transfer Protocol (FTP). Here the processing of the files are very minimum. This hosting service can also be provided for free by Internet Service Providers (ISP).
  • The larger Hosting services, are for those large companies where websites are complex and needs database support along with application development platforms. The larger hosting services include shared hosting, application hosting, etc.


Shared hosting means that the resources that are available and the physical server will be shared by the users. For example, the resources that will be shared are Memory, CPU time, Data and disk space.


The two ways in which a shared hosting can be accomplished are IP based and Name based.

  • IP based – This IP based hosting is also known as dedicated IP hosting is a type of virtual hosting where each virtual host is provided with a different IP address. When the client connects to a web server, it uses the IP address of the client to know about the website.
  • Name-based –This is also known as shared IP hosting, where multiple domain names are hosted on a single machine or server, having one IP address.

In shared hosting, managing servers, technical support, security updates, installing software and other providing other services is the responsibility of the service provider.

What are the benefits of Shared Hosting?

  • The most important benefit of shared hosting is that it is very affordable.
  • Extra storage space can be demanded. This can greatly increase the efficiency in shared hosting.
  • Using shared hosting, the website can be easily customized as the control panel is user-friendly and many powerful tools are available.
  • In shared hosting, the web hosting is managed and by highly professional and skilled experts. This provides convenience as the user needs to concentrate only on the web business.

Disadvantages of using shared hosting:

  • As the number of websites are connected to one server, there are chances of crashes or system failure.
  • A sudden change in traffic in a website of some other user may affect the performance of your website directly.
  • Security can also be an issue with the increase in the rate of cybercrime.

Though there are some disadvantages, they can be solved by taking proper care and finding a hosting company that is reliable and efficient.


Application hosting basically works by using ASP mode. This ASP mode is also known as `On Demand Software’.

The different types of ASP provider include;

  • Volume ASP – This is a specialist ASP that provides the solution at low cost and through their own website.
  • Functional ASP – This ASP provides a single application. For example, processing the payments of credit cards.
  • A vertical market ASP – This ASP provides services to specific customers. For example, providing service to a doctor’s office.
  • Local ASP – This ASP provides services in small areas.
  • Enterprise ASP – Provides services to a broad spectrum.

Why do we need Application Hosting?

We all are aware of the importance of apps in our life. For example, we use the Facebook app. Now, for this app to be available to us, it needs to be hosted somewhere. This application can be accessed through the internet as the hosting makes it available from a remote cloud.

What are the benefits of Application Hosting?

  • The maintenance needed when the application is hosted is quite low. This is because apart from maintaining internet access, there is no responsibility on the clients’ part. The vendors’ responsibility includes maintaining the software and the hardware.
  • Application hosting can be considered as very affordable as software licensing on the basis of “per use”, or “per site” is not required.
  • Accessing the information on the application is very easy as the data is easily available to the users that are authorized users. This data can be used by just login in. Also, as the software and the data is stored on the internet server, the users can work from anywhere.
  • As these hosted applications provide an integrated solution just by using the internet browser, organizations will be greatly benefited from this easy integration.
  • The support that is provided by the hosted application is very efficient. Also, the need to keep track of the version numbers is eliminated as the new updates are installed centrally.

Disadvantages of application hosting:

The disadvantage of application hosting that the internet must be always available. The applications will not work in the absence of the internet.


  • Bandwidth & Disk Space:

In shared hosting, the Bandwidth & Disk Space that is available is quite large. Also, in application hosting, the Bandwidth & Disk Space is available according to the requirement.

  • Maintenance:

The maintenance in shared hosting is done by highly skilled professionals and in application hosting it is done by the vendors. So in both the hosting, maintenance is not an issue.

  • Affordable:

In shared hosting, as the server and the resources are shared, it becomes very affordable. Also, in application hosting, software licensing on the basis of “peruse”, or “per site” is not required, making it very affordable.

  • Security:

In shared hosting, security is low as it is susceptible to cybercrime and also, due to the shared server, the activities in one site may affect another site. But in application hosting, the security may be considered as moderate as each application occupies different space in the server.

In the end, it totally depends on you on which hosting site you prefer depending on your budget or needs. Also, you can always upgrade your hosting plan.